Solidify this concept using
an example of computer
programming as another
“language” used in a
professional setting that
facilitates communication
and understanding.

Ask students for their own
examples of other
professional “languages.”

2. Discuss the different types
of accounting information and
use detailed examples.

Operating information:
discuss the need to track
how much cash you have in
your bank. When you pay
bills or when you receive
cash for sales you need to
account for the changes in
your financial records.

Financial information:
discuss the need to
communicate your financial
position to the bank. If you
apply for a loan the bank
needs to know if you have
the ability to repay it.

Managerial information:
discuss the need for
managers to use financial
information when making
business decisions. Talk
about the need to prepare a
budget.

3. Briefly introduce GAAP

4. Discuss the different
accounting reports using
examples of each. Talk about the
difference between status and
flow reports and point out the
terminology used in the report
heading “as at Dec 31” on a
Balance Sheet versus “for the
period ending Dec 31” on the
Income and Cash Flow Statements.

Assessment/Evaluation:
Have students complete
worksheet. A passing grade is
70% or greater.